Question
GoodsonCorporation assembles various components used in the telecommunications industry. The company's major product, a relay switch, is the result of assembling three parts: XY634, AA788,
GoodsonCorporation assembles various components used in the telecommunications industry. The company's major product, a relay switch, is the result of assembling three parts: XY634, AA788, and GU321. The following information relates to activities of April:
Beginning work-in-process inventory: 4,000 units, 75 percent complete to conversion; cost, $286,000 (direct materials, $220,000; conversion cost, $66,000).
Production started: 25,000 units.
Production completed: 24,000 units.
Ending work-in-process inventory: 5,000 units, 40 percent complete to conversion.
Direct materials used: XY634, $267,000; AA788, $689,000; GU321, $448,000.
Hourly wage of direct laborers, $20; total direct-labor payroll, $126,500.
Overhead application rate: $60 per direct-labor hour.
All parts are introduced at the beginning of Goodson's manufacturing process; conversion cost is incurred uniformly throughout production.
1.Assume that the relay switch required the addition of another part (HH887) at the 70 percent stage of completion. How many equivalent units with respect to part HH887 would be represented in April's ending work-in-process inventory?
Equivalent Units=
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started